The good, the bad and the ugly

February went from good to bad for Mars, starting with a welcome announcement that it is going completely artificial colour free, and ending with a product recall likely to cost the business dearly.

The good

In a welcome move announced in early February, the company said it is removing all artificial colours from its food and drinks globally over the next five years.

Although many of its products are already void of artificial colours, the commitment expands the scope of its efforts and is part of a commitment by the company to meet evolving consumer preferences.

The bad

Just over two weeks later, the company was forced to issue one of the largest product recalls the food industry has seen, following the discovery of plastic in a Snickers bar purchased in Germany.

The recall affects 55 countries and a selection of Snickers, Mars, Milky Way and Celebrations products produced in the company’s Netherlands factory.

The ugly

Solicitor Roythornes estimates that the crisis could cost Mars millions.

“The financial impact of this recall could be astronomic,” warns Roythornes’ Peter Bennett. “Simply getting the products off sale and the logistics and communications involved in that, along with writing them off and losing out on potential sales, is one thing.

“However, the potential legal and PR costs along with the possible reputational damage and the effect that could have on investor relations and the value of the company is another thing altogether.

“We think the cost could potentially run to millions.”